Launching Krispy Natural: Cracking the Product Management Code

Abstract

Pemberton Products is a U.S. market leader in the cookie and bakery snacks segment of the sweet snack market. Looking to expand into the salty snack market, the company acquires Krispy Inc., a maker of salty snack crackers located in the southeastern U.S. To compete with premium cracker brands, Pemberton plans to reformulate and re-launch the Krispy brand as "Krispy Natural," which offers natural ingredients, improved taste, and revised packaging. Market tests in Columbus, Ohio show market share results that are double the company projections while results in 3 cities in the southeastern U.S. fall well below expectations. The marketing director must interpret the market test results, consider possible competitive responses to the new brand, and present his recommendation for a national rollout to the VP of sales and marketing.

Related Work

This case study concerns a review and interpretation of test market results for a new packaged good product. The purpose of the case is to provide students with practice and guidelines in the analysis of quantitative test market data while illustrating the roles of managerial judgment and organizational context in interpreting "hard" data.

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